Markets are separated into two broad categories based on their level of competition. On the one hand there are perfectly competitive markets and on the other hand, there are all other market structures which are grouped under imperfect competition. Markets under imperfect competition are generally described by fewer firms with each firm having some degree of market power depending on the number of firms in the market. Discuss the fundamental differences between perfect competition and imperfect competition (include a discussion of marginal revenue). In addition, discuss how the degree of market power effects the welfare of producers, consumers, and society. 20 Points

Suppose Natasha currently makes $50,000 per year working as a manager at a cable TV company. She then develops two possible entrepreneurial business opportunities. In one, she will quit her job to start an organic soap company. In the other, she will try to develop an Internet-based competitor to the local cable company. For the soap-making opportunity, she anticipates annual revenue of $465,000 and costs for the necessary land, labor, and capital of $435,000 per year. For the Internet opportunity, she anticipates costs for land, labor, and capital of $3,200,000 per year as compared to revenues of $3,275,000 per year.

1. Assume that the structure of the airline industry is characterized as an oligopoly. Airline D observes that if it raises its price, the other airlines do not follow the change, but if it lowers its price, the other airlines always follow the change. Describe the shape of Airline D's demand curve.

2. Explain why the present value of the cash flow expected to be created by the acquisition of a business will decline as the risk of that acquisition rises?

3. Explain why an investment today depends on comparing the costs of the investment to the returns on the investment in present value term.

4. Describe profit maximization in terms of marginal revenue and marginal cost.

Dolores used to work as a high school teacher for $40,000 per year but quit in order to start her own catering business. To invest in her factory, she withdrew $20,000 fromher savings, which paid 5 percent interest, and borrowed $30,000 from her uncle, whom she pays 4 percent interest per year. Last year she paid $25,000 for ingredients and had revenue of $60,000. She asked Louis the accountant and Greg the economist to calculate her profit for her.

Explicit cost- ?

Implicit cost-?

Accounting profit-?

Economic profit-?

LGF Inc. sells furniture for $16,525. customers can buy a 5 years warranty on this furniture for $5,000 up to 1year after the purchase date of the product.  Furniture and warranty package costs $20,000 for special deal.

On January 1, 2007, the company sold 5 special deal packages. The cost of the furniture sold was $68,000.

The company paid cash of $700 for the cost of meeting the warranty during 2007.

The company recognizes revenue annually on the warranty agreement based on the passage of time.

Under IFRS, what is the journal entries for January 1, 2007 and December 31, 2007?

This year Burnham Trucking Compay told their CPA they had purchased a $12,000 trailer but only has receipts of $10,000. Burnham has stated that they "know" what the the true value of the trailer should be, even though the receipt provided is closer to the purchase price of other trailers purchased in the same city/area.

Acceptance by the CPA's of the asset cost as the higher figure of $12,000 and the asset's presentation in the financial statements as $12,000 would be...

Data and information or knowledge is often used interchangeably; however, data becomes information when it is viewed in context or in post-analysis. While the concept of data is commonly associated with scientific research, data is collected by a huge range of organizations and institutions, including businesses (e.g., sales data, revenue, profits, and stock price), governments (e.g., crime rates, unemployment rates, literacy rates) and non-governmental organizations (e.g., censuses of the number of homeless people by non-profit organizations). Having in mind the concept of business research data, compare and contrast the primary and secondary source of data.?

1- DHL Company specializes in rapid parcel delivery. Cross sectional data from DHL’s regional hub in Palestine were used to estimate the demand equation for the company’s services. Holding income and prices of other goods constant, the demand equation is estimated to be

P = 66Q -1 /3

where P is the price per pound and Q is pounds delivered. The marginal cost of delivery is constant and equal to $2 per pound.

a. What is the point-price elasticity of demand?

b. What are the profit-maximizing price and quantity?

c. What are the total revenue maximizing price and quantity?

Ace Distributors has the following transactions related to notes receivable during the last month of the year.

Journalize the transactions for Ace Distributors. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

XYZ Company plans to develop stores in UAE. Each new store will require an initial investment of $270,000 and a monthly operating cost of $25.000. Each will 578.500 h value after 5 years. The company also estimates that a new store will bring in revenue of $40,000 each month. Using the annual worth w method in the way investment if the company's MARR is 8% per year, compounded monthly.

AW = 12,586 + investment should be rejected.

AW = $9,586 - investment should be accepted.

AW = $11,586 -- investment should be rejected.

AW = $10,586 -- investment should be accepted.